Peer Pressure in the Investing Worldby Warren Buffett
The important qualities you need are intelligence, patience, and interest, but the biggest thing is to be rational. In '97-8, people weren't rational. People got caught up with what other people were doing. Don't get caught up with what other people are doing. Being a contrarian isn't the key, but being a crowd follower isn't either. You need to detach yourself emotionally. You need to think about what is going on around you. Being in Omaha helps me in that regard. When I was in NYC, I had 50 people whispering in my ear before noon. It's hard sometimes, like when the Internet craze hit. Nobody likes to see their neighbor doing stupid things and getting rich. It was like Cinderella's ball, I think I'll just have one more dance, it's not midnight yet. Sounds simple -- but it is hard to leave the party. The problem with stocks is they don't have clocks. You don't know when it will be midnight so you can leave the party.